It is very welcome to be able to share a bit of good news on the SME funding front for a change!
The National Association of Commercial Finance Brokers (NACFB) reported last month that SME lending had posted strong month-on-month growth in September, with a total of £1.25bn being lent to small firms. This represents a solid 55% growth from the year before.
This is a healthy development for sure and welcomed by all.
However, many of the underlying problems remain. As the NACFB point out in their research, there are still a full 50% of business loan applicants being rejected for bank support. The research also indicates that a significant majority of those refused funding do not go on and apply elsewhere.
As noted in my previous blogs, this is in effect a drag on growth. Lost potential.
The NACFB continues to promote alternative funding options and, given the success of their latest initiative – Love Lending Week #lovelending – there is a real appetite from business owners to learn more about their options, either before or after their visit to the bank.
While the wheels of government turn slowly, I am happy to report that our initiative in this area, the alternativebusinessfunding.co.uk portal continues to gather pace and I hope that I will have more exciting news on this soon.